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Climate Strategies and Risk Management |
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Climate Risk Assessment and Management Process |
| 1. Climate Risk Assessment and Management Process |
The Company conducts materiality analysis through sustainability-themed questionnaires, which identify climate change as a material topic. Accordingly, in accordance with the "Risk Management Policy and Procedures," climate change risks are incorporated into the scope of management, and appropriate response measures are taken to reduce risks to an acceptable level. To strengthen the identification and management of climate change risks, the Company refers to the TCFD framework to identify climate-related risks and opportunities, formulate response measures and target plans, aiming to mitigate the impact of climate change risks on business operations and enhance climate resilience.
| 2. Climate Scenario Settings and Impact Analysis |
(1) Transition Risk：
The Company refers to the IEA WEO 2023 report and sets the future climate environment as "global temperature increase of 1.5°C", and takes "Taiwan 2050 Net Zero Emissions and Strategy" and "Climate Change Response Act" into scenario considerations and assessment. The possible impact of each risk event under future climate scenarios.
(2) Physical Risk：
To prepare for the most severe climate-related disasters that may occur in the future, the Company referenced the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6) under the SSP5-8.5 high-emission scenario, along with relevant data from the National Science and Technology Center for Disaster Reduction, including disaster potential maps, climate change projections, and adaptation knowledge platforms. Based on this information, the Company identified and assessed whether each plant may be affected by climate change or extreme weather events under future climate scenarios.
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In this assessment, 5 medium-to-high level climate risks were identified from a total of 18 risks. Among the transition risks were "carbon fee imposition", "low-carbon technological transformation", "rising electricity prices", and "customer demands for renewable energy usage." The identified physical risk was "damage to buildings and facilities caused by typhoons, strong winds, and heavy rain." Additionally, 3 climate-related opportunities were recognized from the risk analysis. The Company has developed corresponding response strategies in an effort to mitigate the potential negative impacts of climate change on its business operations.
